In large bowl, mix 2 cups flour, sugar, undissolved yeast,
lemon peel and salt. Heat milk, butter and water until hot to
touch (125 to 130°F). Butter does not need to melt. Gradually
add to dry ingredients. Mix thoroughly with a wooden spoon or
using a dough hooks, and then stir in enough additional flour
to make stiff dough. Knead by mixer or by hand on lightly floured
surface until smooth and elastic, about 8 to 10 minutes. Place
in greased bowl, turning to grease top. Cover; let rise until
doubled in size, about 75 minutes.

Punch dough down; divide in half. Roll each half to 10X15-inch
rectangle. Top each with 1/2 poppy or nut filling, spreading
to within 1/2-inch of edges. Roll up from long end as for jelly
roll. Pinch seam and ends to seal. Place loaves on greased baking
sheets. If desired, curve ends to make a horseshoe. Cover; let
rise in warm, draft-free place until risen slightly, 30 to 45
minutes.

Brush loaves with beaten egg. Bake at 350°F for 35 minutes
or until done. Remove from baking sheets. Cool on wire racks.
If desired, frost with confectioners' sugar frosting and garnish
with additional ground nuts or poppy seed.